QQQ vs SMMU
Invesco QQQ Trust, Series 1 vs PIMCO Short Term Municipal Bond Active Exchange-Traded Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SMMU offers more diversification with 338 holdings.
Side-by-Side Comparison
| Metric | QQQ | SMMU | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $1.2B | |
| Dividend Yield | 0.44% | 2.89% | |
| Holdings | 108 | 338 | |
| YTD Return | +16.64% | +1.27% | |
| 1Y Return | +27.27% | +2.69% | |
| 3Y Return (annualized) | +25.96% | +3.66% | |
| 5Y Return (annualized) | +14.54% | +1.93% | |
| Volatility (annualized) | 30.6% | 1.6% | |
| Max Drawdown | -83.0% | -5.1% | |
| Fund Family | Invesco (US) | PIMCO (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Feb 1, 2010 |
QQQ vs SMMU Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and PIMCO Short Term Municipal Bond Active Exchange-Traded Fund (SMMU) is a ETF from PIMCO (US). Over the past year QQQ returned +27.27% while SMMU returned +2.69%. Year to date, QQQ is up 16.64% versus a gain of 1.27% for SMMU.
Over three years, QQQ compounded at +25.96% per year against +3.66% for SMMU; over five years the annualized figures are +14.54% and +1.93% respectively. Across the full 17-year window we track, QQQ has the edge at +13.03% annualized vs +0.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.6% for SMMU. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -83.0% for QQQ and -5.1% for SMMU. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMMU charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.89% for SMMU.
Holdings Overlap
QQQ and SMMU share 0 holdings out of 318 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SMMU?
QQQ has an expense ratio of 0.18% while SMMU charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or SMMU?
Over the past year QQQ returned +27.27% vs +2.69% for SMMU, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.03% vs +0.78% for SMMU. Past performance does not guarantee future results.
Which is riskier, QQQ or SMMU?
QQQ has been the more volatile fund at 30.6% annualized versus 1.6% for SMMU. Worst drawdown: QQQ -83.0% vs SMMU -5.1%.
Should I hold both QQQ and SMMU?
QQQ and SMMU have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SMMU?
QQQ and SMMU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 318 unique securities.
Which pays a higher dividend, QQQ or SMMU?
QQQ yields 0.44% while SMMU yields 2.89%, so SMMU currently pays the higher dividend yield.
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